In the camp of higher mortgage rates, weвЂ™re looking at: If youвЂ™re trying to determine the right time to lock a rate, you have to ask yourself: what could drive rates higher or lower? And which scenario is most likely?Д¬urrently, there are two strong arguments in favor of higher rates and one against. Mortgage rate forecasting is an exercise in probability. The simple reason is that the forces likely to drive rates higher are much stronger - at least at the moment - than those that could push rates lower. Since then, rates have wavered in the high-2% to low-3% range, depending on which lenders (and borrowers) you look at.Д«ut we still believe mortgage rates are set to rise in June and the following months. And though rates did spike briefly in April, they took a surprise tumble - falling below 3% in May, according to Freddie Mac. WeвЂ™ve been predicting higher rates for a while now. Mortgage rates could continue to fluctuate as a result.Д«ut while some weeks might bring dips and others spikes, expect to see an overall upward trend as 2021 progresses. Others, like the current employment situation, are off to a rockier start than expected. Some indicators, like the inflation rate, are soaring. And the country as whole is on an upswing, which should lead to higher rates in June and the coming months. Mortgage rates are closely tied to the health of the U.S. Locking a rate soon could secure you a great deal, while waiting on further drops is risky.

Though exact forecasts vary, the consensus is for higher rates in the near future. Others think weвЂ™ll see a more modest increase to around 3.3% in the same time frame.

Some agencies predict rates as high as 3.5% or 3.6% by the end of summer. Mortgage rates could stay close to 3% in June, as theyвЂ™ve done this spring.Д«ut when it comes to overall trends, weвЂ™re far more likely to see a steady increase in rates than any substantial drop.

Freddie mac interest rate forecast